Top 5 Specialty Retail Companies To Invest In Right Now

Last Sunday, I offered up the Father's Day Portfolio for investors looking to beat the market over long periods of time. And while I can't make any promises, of course, I feel pretty darn good about its chances of success. One of the reasons why? Because I added Dick's Sporting Goods (NYSE: DKS  ) to the mix.

It ain't easy
Generally speaking, retailers are pretty tough. There are no real barriers to entry, and moats are pretty hard to come by. But, specialty retailers that provide something unique can be a different story. And I think that's what we have here with Dick's Sporting Goods. You can see by the chart below that shareholders over the last 10 years are feeling pretty good about life right now:

Top 5 Specialty Retail Companies To Invest In Right Now: BioSpecifics Technologies Corp(BSTC)

Biospecifics Technologies Corp., a biopharmaceutical company, involves in the development of an injectable collagenase for various indications. It has a development and license agreement with Auxilium Pharmaceuticals, Inc. for injectable collagenase for clinical indications in Dupuytren?s contracture, Peyronie?s disease, and frozen shoulder. Biospecifics Technologies Corp. also focuses on the development of collagenase for various other clinical indications, including human and canine lipoma and cellulite. The company develops and commercializes XIAFLEX, which is used for the treatment of adult Dupuytren?s contracture. Biospecifics Technologies Corp. was founded in 1957 and is headquartered in Lynbrook, New York.

Top 5 Specialty Retail Companies To Invest In Right Now: P.T. Telekomunikasi Indonesia Tbk.(TLK)

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk provides telecommunication and network services worldwide. The company?s Fixed Wireline segment offers local, domestic long-distance, international telephone services, and other telecommunications services, including leased lines, telex, transponder, satellite, and very small aperture terminal (VSAT), as well as ancillary services. Its Fixed Wireless segment provides local and domestic long-distance code division multiple access-based telephone services, as well as other telecommunication services within a local area code. Perusahaan Perseroan?s Cellular segment offers mobile cellular telecommunication services. Its network services comprise satellite transponder leasing, satellite broadcasting, VSAT, audio distribution, and terrestrial and satellite-based leased lines. The company?s data and Internet services include short messaging service for fixed wire line, fixed wireless, and cellular phones, dial-up and broadband Internet access, virtual private network (VPN) frame relay, Internet protocol (IP) VPN, voice over IP for international calls, integrated services digital network connections, and other multimedia services. The company also provides information services, such as billing, directory assistance, and content services; and wireless application protocol, Web portal, ring back tones, voicemail, and building management services. In addition, it offers consultancy services, as well as constructs and maintains telecommunications facilities; interconnection services; telephone directory production services; and cable and pay television services. As of December 31, 2010, the company served 120.5 million customers, including 8.3 million fixed wireline telephone subscribers, 18.2 million fixed wireless telephone subscribers, and 94.0 million cellular telephone subscribers. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk was founded in 1884 and is headquartered in Bandung, Indonesia.

Advisors' Opinion:

• [By Richard Band]

  Telkom Indonesia (NYSE: TLK), the dominant provider of both fixed-line and wireless communications in sprawling Indonesia (population 237 million). As in most countries, the traditional wireline voice business is shrinking, albeit slowly. On the other hand, TLK’s broadband Internet subscriber rolls are estimated to have grown a torrid 50% or more in 2010. Cell phone usage is booming, too. In December, the company predicted it would add 10 million to 12 million new subscribers in 2011, on an existing base of 94 million.

  I love TLK’s conservative balance sheet. Net debt to cash flow (EBITDA) stands at a trifling 0.23, versus a median ratio of 1.3 for the global telecom industry. In addition, thanks to TLK’s strong earnings performance in 2010, I look for a plump double-digit dividend increase this year. Based on my projected dividend rate of $1.43 for 2011, the stock currently yields 4.3%. Buy TLK at $36 or less.

• [By Richard Band]

  The mantra here is “free cash flow.” In recent years, Telkom Indonesia (NYSE: TLK), the dominant provider of both fixed-line and wireless communications in sprawling Indonesia, has poured huge sums into upgrading its networks. Now the company has the luxury of throttling back a bit.

  Starting in 2011, each sales dollar (rupiah, actually) will generate more profit — along with a surge of cash that can be distributed to shareholders. I predict, in fact, that Indonesia’s largest telco will boost its dividend more than 30% by 2013 (from a 2010 base). That’s the kind of growth you want in retirement! Current yield, based on my estimate of 2011 dividends, is 4.8%. Buy TLK up to $36.

• [By Robert Holmes]

   Analyst Navin Killa is looking to Indonesia for opportunity with the pick of PT Telekom.

  "An improving pricing environment will lead to stock price recovery, we believe," Killa says. "Telkomsel is regaining market share. Historically, as Telkomsel has reduced the pricing gap with its peers, the incumbent has increased its market share."

  Killa's base target for PT Telekom calls for a 36% jump over the next 12 months after the stock fell 8% this year. However, Killa's most bullish call would see shares rise 56%, while the bearish scenario would see only a 9% increase in share price over the next year.

  The chart below shows the American Depositary Receipts of PT Telekom trading in the U.S., although Morgan Stanley recommends buying shares trading on overseas exchanges.

10 Best High Tech Stocks To Invest In Right Now: PFB Corporation (PFBOF)

PFB Corporation (PFB) is a Canada-based company. The Company, together with its subsidiaries, is engaged in the manufacturing of insulating building products made from expanded polystyrene (EPS) materials and marketing these products in North America. Its main brands include PlastiSpan EPS Product Solutions; Advantage ICFS, Insulspan SIPS, Riverbend Timber Framing and Precision Craft. Expandable polystyrene resin is manufactured at PFB�� polymer plant located in Crossfield, Alberta, for use in downstream EPS manufacturing operations. Plasti-Fab EPS Product Solutions supply the EPS foam core material used to manufacture Insulspan SIPS. Riverbend Timber Framing structures are typically sold with an accompanying Insulspan SIPS enclosure package. Advantage ICF Systems are insulating concrete forming systems that are employed to build insulated foundations and walls from concrete in both residential and commercial markets. On February 1, 2011, the Company acquired Precision Craft Group. Advisors' Opinion:

• [By Tom Konrad]

  PFB is a leading North American manufacturer of expanded polystyrene (EPS, aka "Styrofoam") building products such as insulated concrete forms and structural insulated panels.  The stock trades infrequently, and did not trade at all on December 28th, so I will be using the midpoint of the bid and ask for the purpose of measuring its return over the coming year.  At $5.53, PFB pays a 5.75% annual yield.
  
  The stock price has fallen significantly after the planned purchase of NOVA Chemicals' Performance Styrenics business as a move towards vertical integration with the acquisition of the EPS manufacturer.  This deal fell though, and many investors sold the stock, driving it down from the mid $7 range to the mid $5 range where it is today.   Already a good value, PFB stands to gain from continued recovery in the housing market or any increase in investor recognition.  However, since the stock is so illiquid, larger investors will probably want to substitute one of my upcoming alternative picks for PFB, while small investors should limit themselves to good-til-cancelled limit orders to avoid paying over the odds for their shares.

Top 5 Specialty Retail Companies To Invest In Right Now: Swift Resources Inc (SWR.V)

Swift Resources Inc. engages in the acquisition, exploration, and development of mineral properties in British Columbia, Saskatchewan, and Manitoba, Canada. The company explores for gold, silver, copper, precious metals, and coal deposits. It has a joint venture agreement with Saturn Minerals Inc. for the exploration of the Saskatoba coal project located along the Saskatchewan/Manitoba border. The company was incorporated in 2006 and is based in Vancouver, Canada.

Top 5 Specialty Retail Companies To Invest In Right Now: Johnson Outdoors Inc.(JOUT)

Johnson Outdoors Inc., together with its subsidiaries, designs, manufactures, and markets seasonal outdoor recreation products used primarily for fishing, diving, paddling, and camping. Its Marine Electronics segment offers battery powered fishing motors for trolling or primary propulsion; sonar and GPS equipment for fish finding and navigation; downriggers for controlled-depth fishing; leisure boat navigation technology; and lake charts. The company?s Outdoor Equipment segment provides consumer tents, sleeping bags, camping furniture, and other recreational camping products; commercial tents, such as party tents and accessories, including lighting systems, interior lining options, and mounting brackets; heavy-duty tents and lightweight backpacking tents for the military, including modular general purpose tents, rapid deployment shelters, and lightweight one and two person tents; and military tent accessories, such as fabric floors, as well as field compasses and digital instruments, and performance measurement instruments. This segment also acts as a subcontract manufacturer for other providers of military tents. It primarily serves camping and backpacking specialty stores, sporting goods stores, catalog and mail order houses, general rental stores, and tent erectors. Its Watercraft segment offers canoes, kayaks, accessories, paddles, and personal flotation devices. The company?s Diving segment manufactures and markets a line of underwater diving and snorkeling equipment, including regulators, buoyancy compensators, dive computers and gauges, wetsuits, masks, fins, snorkels, and accessories for technical and recreational divers. This segment also offers diving gear to dive training centers, aquariums, and resorts. Johnson Outdoors Inc. operates primarily in the United States, Europe, Canada, and the Pacific Basin. The company was founded in 1985 and is headquartered in Racine, Wisconsin.